How we're transforming embedded lending for the "Momnt" of Need

When was the last time you saw a fintech company describe itself

as being built on the ideals of trust, creativity, and sharing?

It’s certainly not the term that comes to mind when you think of high-powered financial institutions and their strategies for embedded lending. It’s all work, no play. The problem with this approach, of course, is that it leads these firms to make decisions focused purely on profit. Their algorithms are locked inside a black box, designed to benefit only them. It leaves merchants and lenders uncertain of whether they’re actually offering the best terms to their customers, and customers wondering why, even if they have stellar on-time payment histories, they were declined for a critical purchase.

Our team at Momnt – which offers embedded lending technology specifically for the home improvement and healthcare markets – decided it was time to reset expectations for the fintech market and try a new approach: letting those core values that were instilled in us as kids lead the way. Honesty, trustworthiness, transparency, and, yes, playfulness. When you were younger, your parents taught you that “sharing is caring.” We live by that motto.

As we flipped the script on fintech management, a funny thing happened: our employees were empowered to be more innovative, to take risks that paid off. The investors followed. In 2022, we closed a $7 million Series A funding round led by Saluda Grade Ventures and secured an additional $9.5 million from existing investors and a strategic investment from Yamaha Motor Ventures.

So what did these investors see in our core values-driven approach – and how can it benefit customers?

Delivering in the “Momnt” for Merchants

An embedded lending solution should help merchants convert prospects to customers quickly and securely while giving those prospects multiple options to pay in a manner that best suits their needs. That’s why we developed Momnt with frictionless commerce in mind.

  An embedded lending solution should help merchants convert prospects to customers quickly and securely while giving those prospects multiple options to pay in a manner that best suits their needs. 

Instead of requiring a customer to come in the store or office to sign papers, or complete financing on a third-party website, Momnt’s embedded lending platform installs directly in the merchant’s checkout process, letting customers select financing options right then and there. We provide merchants a range of loan products, ensuring they can offer a plan that suits the buyer, and we keep the proceeds in a closed loop – they can only be used at that merchant. And in the spirit of full transparency, we don’t charge monthly recurring fees. The only cost to the merchant is a small fee for each transaction.

Delivering in the “Momnt” for Lenders

Lending involves risk – but trying to take a one-size-fits-all approach to approving customers can leave money on the table and a bad taste in consumers’ mouths. And there’s also the matter of the black box. Traditional embedded lending offerings essentially slap a “trust us” sticker on their algorithm, taking away lender autonomy. That doesn’t jive with Momnt’s core values.

Instead, we developed our platform with empowered in mind. Our algorithm allows lenders to leverage alternative data and ML/AI-informed decision-making for a more complete picture of the prospect’s creditworthiness. And by giving lenders more space to make an offer, Momnt helps drive increased ticket sizes while generating higher returns and cross-selling with other products. We’re also a turn-key offering, directly distributing the funds to all parties when the work is complete and eliminating core processor integration.

Delivering in the “Momnt” for Consumers

Some loans consumers can plan for – purchasing a new car, moving into a new home, taking a much-needed vacation. But other expenses can rear their ugly head at the most inopportune times – a broken arm, a hail-damaged roof. In the past, if a consumer couldn’t dig into savings, they might have to turn to a high-interest credit card or sketchy payday loan services. Momnt wants to take that option out of the equation.

Using the Momnt embedded lending platform, customers seeking loans for home improvement or healthcare can securely apply for funding on the merchant’s site, receive a variety of pre-qualified offers from lenders (with interest rates typically much lower than a credit card), and get approved and funded all on one site. They’re not required to make a decision immediately – they have up to five months to transact with the merchant. We make it easy to repay over the phone and online, and we don’t charge early payment penalties.

Delivering with Momnt

At Momnt, we’ve found our core values serve us well – and they run through every decision we make. We simplify financing for merchants that want to streamline the purchase process. We offer transparency for lenders that want to fund customers who may not meet traditionally stringent requirements. And we give consumers a lifeline without pulling the rug out underneath them with high interest rates. It’s all about making embedded lending a kinder, more understanding, more inclusive process. And of course, with those improvements come greater profits.

If your business is seeking an embedded lending platform, we’d love to talk with you. You can learn more about Momnt at https://www.momnt.com.